Episode No. 2 of “The Ultimate Fighter 17″ opens with the fighters moving into the “TUF” house. Spirits seem high as everyone settles into their new home. Still, it doesn’t take long for everyone to get back to the game at hand, and Team Jones is still a little shocked that head coach Jon Jones picked Gilbert Smith against Team Sonnen’s towering Luke Barnatt.

Things seem better at practice, as the team works through drills and Gilbert preps for his fight. The “Bubba” McDaniel and Josh Samman, in particular, seem very concerned that their teammate isn’t physically prepared. As it turns out, so is the coaching staff. Gilbert is frustrated when the team admits some of their observations, and he has an emotional moment at the house as he talks to Adam Cella about his family back home. The moment just further fuels the team’s concerns.

At Team Sonnen’s practice, things seem to be firing on all cylinders. Not so much at Team Jones, as “Bubba” brings Gilbert’s emotional strains to the attention of assistant coach Frank Mir, who listens but seems to brush the concerns to the side. The team takes it further by addressing Gilbert yet again, and he unsurprisingly doesn’t take it particularly well. Jon listens into the talk from the outside of the room, and he comes in to reaffirm his faith in Gilbert in an attempt to have his fighter refocus.

Jones preps his fighter for the clash with the taller Barnatt by working on his overhand attack.

Back at the house, Chael Sonnen and his assistant coaches stop by for a visit. Chael talks with Uriah Hall, and he admits he’d like to seem him get an easy pass into the quarterfinals. Uriah has none of that. Bring on the best, he says.

As Luke prepares for the fight, he admits he’s never been good at much other than fighting. Chael thinks the lengthy frame is going to be problematic for Gilbert. Both fighters make weight for the matchup, and it’s time to determine our first quarterfinalist. UFC President Dana White admits he’s shocked that Jon picked the matchup, but it’s time to see if there was any wisdom in his choice.

TEAM JONES’ GILBERT SMITH (5-1) VS. TEAM SONNEN’S LUKE BARNATT (5-0)

Round 1 – Referee Steve Mazzagatti oversees the fight. Luke lands an early low kick directly to the cup. There’s a brief timeout, but we fight on. Luke tries to keep distance and use his range, but Gilbert shoots inside and wraps the body. Luke initially defends before settling briefly on his back, but he gets back to his feet with little issue. Luke eventually works in a few short knees, but Gilbert isn’t offering any space at all. With two minutes remaining, they finally break apart. Gilbert shoots quickly back in, but Luke defends and tries to move to his opponent’s back. He can’t quite get there, and the fight returns to the feet. Gilbert continues to push forward for a takedown, but the round ends on the feet.

Round 2 – Between rounds, Jon asks Gilbert to get busy with his hands. Still, it takes him just 12 seconds to get inside on a takedown. It backfires, and Luke briefly holds top position before Gilbert crawls back to his feet and continues to push in from the outside. Barnatt tries to roll into a slick kimura but loses the position and is underneath his opponent. However, Luke climbs right back to his feet before Gilbert can capitalize. Luke then wraps the body and scores an outside trip that earns him half-mount. Gilbert alertly climbs back to his feet in hopes of turning the tide. When they reset on the feet, Gilbert shoots in for a takedown but dive right into a flying knee that sees him drop to the floor. Knockout finish.

Luke Barnatt def. Gilbert Smith via TKO (flying knee) – Round 2

Jon believes Gilbert made a mistake by allowing Luke to set the tone throughout the fight. A few Team Jones fighters sport an “I told you so” look, so “Bubba” tries to take matters into his own hands by calling out Team Sonnen’s Kevin Casey. “King” thinks it’s a disrespectful move.

Back in the locker room, Gilbert is broken. The coaching staff reminds him of a potential wild-card slot, but Gilbert is busy fighting back tears. Jon addresses the rest of the team and tells them they need to be upset at how things have gone down.

Team Sonnen has control of the matchups, so for next week Chael picks his No. 2 draft pick Uriah Hall against Team Jones’ Adam Cella, a No. 6 pick. Jon admits his fighter is the underdog going into episode No. 3.

Catch new episodes of “The Ultimate Fighter 17: Team Jones vs. Team Sonnen” every Tuesday at 9 p.m. ET on FX. MMAjunkie.com recaps each episode of the reality series.